Skip to main content
No. of Recommendations: 3

Better explained here:

The IRS recently issued Announcement 2014-15 in which it states that beginning in 2015, another condition will apply to making a tax free rollover — no other rollover can have been made from any other of the taxpayer's IRAs within the prior 365 days. In the past, the once a year rule was applied on a per IRA basis. Some taxpayers would use multiple IRA accounts to string together several 60-day periods and effectively give themselves an interest free loan from their IRA funds. After the tax court ruling in Bobrow v Commissioner , this IRS announcement essentially states the once a year restriction will apply on a per taxpayer basis. The IRS has made this effective in 2015 to allow taxpayers and IRA custodians time to adapt and the IRS to update Publication 590.

Please note that it is common for people to use the term "rollover" to refer to any transfer of retirement account assets. Technically, this rule doesn't apply to transfers such as trustee to trustee transfers or "direct rollovers" wherein an IRA custodian sends the money directly to another IRA without the taxpayer taking possession.

I've seen this rollover loan strategy used on other boards, such as when needing funds to buy a home before a prior sale closes. I doubt many on this board play those games, but FYI. More importantly, use those allowed custodial transfers rather than taking the check in your hand. We were once handed a check to transfer on our own, told it was not a problem as long as we got it into another account within 60 days. Now understanding this limit, I would have resisted that more decisively.


Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.